CFG Bank’s 12-Month CD: A Solid 5.25% APY Worth a Look

If you’ve been shopping around for a certificate of deposit lately, you know rates have been shifting. But CFG Bank is still holding strong with a 12-month CD that pays 5.25% APY. That’s well above what most big banks are offering right now, and it’s available to anyone in the country. Let’s break down what you need to know before you lock in your money.

What Makes This CD Stand Out?

First off, the rate. At 5.25% APY for a one-year term, CFG Bank is easily among the top players in the country right now. Many online banks are hovering around 4-5%, so this is a nice bump.

The minimum deposit is just $500, which is pretty accessible. You don’t need a huge pile of cash to get started. And if you have more to put away, you can go up to $250,000 per account.

Another plus: you can fund the account via ACH transfer from another bank, so no need to mail a check or visit a branch.

• Competitive 5.25% APY on 12-month term
• Low $500 minimum deposit
• Maximum deposit of $250,000
• Fund via ACH transfer
• FDIC insured

A Few Things to Keep in Mind

Like any CD, you’re committing your money for the full term. If you need to withdraw early, CFG Bank charges a penalty of 180 days of interest. That’s pretty standard, but it’s worth noting—especially if you think you might need the cash before the year is up.

Also, rates can change. The 5.25% APY is current as of late July 2024, but it could drop in the future. Always check the latest rate before applying.

One more tip: CFG Bank also offers a High Yield Money Market account that’s been competitive. If you want more flexibility than a CD, that might be worth a look.

• Early withdrawal penalty: 180 days of interest
• Rates subject to change
• Consider a money market account for more liquidity

How to Open an Account

Opening a CD with CFG Bank is straightforward. You can apply online from anywhere in the U.S. Just head to their website, choose the CD term you want, and follow the steps. You’ll need to provide some personal info and link an external bank account to fund the deposit.

Once the CD is open, you can manage it online, set up alerts, and even access a network of nearly 29,000 ATMs if you also open a checking account. But for the CD itself, you’ll mostly just let it sit and earn interest.

• Apply online, nationwide
• Link external bank account for funding
• Manage account via online banking

Bottom Line

• CFG Bank’s 12-month CD offers a top-tier 5.25% APY with a low $500 minimum.
• Early withdrawal penalty is 180 days of interest—plan accordingly.
• Rates are competitive but can change, so lock in while you can.
• FDIC insured up to $250,000 per depositor.

Common Questions